If a parcel of land is sold for $200 per front foot, how much would a salesperson earn from a $200,000 sale if they receive 60% of a 10% commission?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

To determine the amount the salesperson would earn from the sale, follow these steps:

First, calculate the total commission from the sale. The sale price of the property is $200,000, and the commission rate is 10%. To find the total commission, multiply the sale price by the commission rate:

Total Commission = Sale Price × Commission Rate

Total Commission = $200,000 × 0.10 = $20,000

Next, the salesperson earns 60% of this total commission. To find the salesperson's share, multiply the total commission by 60%:

Salesperson's Earnings = Total Commission × Salesperson's Percentage

Salesperson's Earnings = $20,000 × 0.60 = $12,000

Upon reviewing the answer choices provided, it seems the intended selection is not present. Either an error has occurred in the question's setup or in the possible answers provided, as the calculations yield a total sales commission that results in a significantly different earned amount than any of the options presented.

In terms of choice B being correct in your provided context, it isn't consistent with the calculated commission breakdown and the percentages applied.

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